Is there a
faster way
to remove
the legacy
burden?
The communications industry is one of the fastest
changing in the world with new and exciting network
technologies, devices, services and end-user
experiences being introduced at an ever increasing
pace. It is therefore somewhat surprising that service
providers are still heavily dependent on legacy
systems to enable this and that while the majority of
them recognize that this is negatively impacting their
business, only a small fraction are actually in the process
of implementing related improvement programs.
Is there a faster way forward?
Legacy systems presence in the IT environment
Legacy systems presence in core/non-core areas
56%
According to new research conducted for Amdocs by
research firm Coleman Parkes, 56% of service providers
worldwide have a medium to heavy presence of
legacy systems within their IT environments, with
69% reporting legacy systems in core areas.
69%
Medium
& Heavy
Presence
Core
Areas
44%
Few
Systems
31%
Non-Core
Areas
Improvement
is a must
The research further found that while 75% of service providers plan to invest in
improvement programs to address this heavy legacy presence, only 21% are
rolling out such programs. The rest are planning on doing so within the next two
years. Service providers are considering different solutions to address their legacy situation. These include software and
services-based solutions, targeting a full-stack transformation or optimization of existing systems, leveraging internal or
external resources (e.g. managed services vendors).
CSPs Legacy Improvement Programs
75%
plan to
invest
BUT Only
21%
rolling out
programs
The research shows that plans to outsource legacy environments
that support core BSS areas such as billing, CRM and ordering
are significant, with 40% of respondents, on average, stating
that their companies are already outsourcing all or part of their
operations in these areas, and a further 19% indicating that they
plan to.
Notably, 64% said they prefer to use the same managed services
vendor to which they currently outsource non-legacy environments
for supporting their legacy environments as well.
The latest in IT managed services innovation
The latest advancements in IT services to address the
need for legacy system optimization leverages innovative
technology through multi-dimensional data analysis. This
technology compiles and analyzes data from across
software and hardware components, as well as business
and organizational processes. The analysis is focused on
addressing predefined business goals and KPIs. Coupled
with an incremental change approach, this technology
supports gradual implementation of system and process
enhancements, data rationalization, automation and
decommission, which reduces implementation risk while
improving business agility and TCO.
Existing industry case studies, where service providers
used this approach, have shown up to 30% reduction in
operational costs, as well as dramatic improvements in
service quality.
MAIN
CHALLENGES
FOR CSPs
LEGACY
OPTIMIZATION
BENEFITS
This included, for example, a 70% reduction in billing
defects and 60% reduction in billing cycle time.
Heavy dependence on legacy systems introduces
integration complexity and is damaging the ability of service
providers to deploy new technologies and adopt new
trends. These are the main challenges as reported
by nearly 70% of the respondents. Service provider CIOs
must therefore quickly address their legacy situation. A
strategy that leverages IT services, especially when delivered
by a managed services provider with vast experience in
the communications domain, that can also offer the latest
innovation with clear SLAs and KPIs, can help achieve
immediate improvements to place service providers in a more
favorable position in the face of heightened competition.
Deploy new
technologies
Improved
customer
experience
Integration
complexity
Adopt new
trends
Reduced time
to market
Achieved operational
excellence
Dramatically improved
service quality
Reduced
OPEX
About the Amdocs-Coleman
Parkes Sourcing Models Survey
About
Amdocs
The research, carried out by Coleman-Parkes
on behalf of Amdocs Services, spanned
numerous countries across Europe, APAC
and the Americas. It encompassed over 70
interviews with C-level executives as well as
heads of IT operations and lines of business
from leading service providers.
For more than 30 years, Amdocs has ensured service providers’ success and embraced their
biggest challenges. To win in the connected world, service providers rely on Amdocs to simplify
the customer experience, harness the data explosion, stay ahead with new services and
improve operational efficiency. The global company uniquely combines a market-leading
BSS, OSS and network control and optimization product portfolio with value-driven
professional services and managed services operations. With revenue of $3.6 billion in fiscal
2014, Amdocs and its more than 22,000 employees serve customers in over 80 countries.
For more information, visit Amdocs at www.amdocs.com
© 2015 Amdocs. All Rights Reserved